Tim Sweeney again criticized Steam for mandatory AI flags

Epic Games CEO Tim Sweeney has once again criticized Valve for mandating generative AI on Steam.This time he responded to a post by Matt Workman of Fal, a cloud-based platform for generative media.Workman called the idea of ​​disclosing the use of AI "absurd in 2026" and "a disgrace to Valve and Steam."Sweeney supported him: according to him, such a policy is “disgusting” because it forces developers to write a “political statement”, which is then used against them by “mobs of haters.”

Long-standing dispute with Valve

Sweeney has been fighting this rule for years.Back in November 2025, he stated that labeling in game stores is pointless since AI will be involved in almost every development.In June 2026, at Unreal Fest Chicago, he compared the mark to the “scarlet letter” from Nathaniel Hawthorne’s novel, that is, to a stigma.According to him, in order for a game to be added to wishlists, it needs to be put on Steam, and in order for it to be played there, you will have to put this letter on it, and then a community of haters will appear that will try to kill the project.

Steam Rules for Today

Steam doesn't ban generative AI, but starting in 2024 it requires people to indicate exactly how it was used.In January 2026, Valve narrowed the rules: assistant tools for writing code do not need to be disclosed, but generated game content is required.For example, on the Call of Duty: Modern Warfare 4 page it says that the team uses generative AI to create some of the game's assets.Valve explains the requirement with transparency: the buyer must understand how the content was created.

There is no mandatory labeling on the Epic Games Store, and Epic itself is betting heavily on AI in Unreal Engine 6.

Tagging and game success

There is some truth in Sweeney's words.A Game Oracle study found that games with the flag receive about half as many reviews on Steam as comparable titles without it.But such a mark does not become a death sentence: Clair Obscur: Expedition 33 and ARC Raiders came out with it and still became hits.

Sources: VGTimes, GamesRadar.